Liability question

My late wife acted as guarantor on my step sons loan. if he now defaults on his loan will i be liable
?

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  • Brie
    Brie Posts: 9,364
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    I can't see how you can be liable as you are not your wife and you have not signed up to anything.  

    Have you seen the T&Cs of the loan or anything that your wife signed to help him?   It would be good to check just to see what it says happens in these circumstances.  Is it possible that your wife had listed account details from which the money might be paid?  If that was the case then I would suggest that they need to know that she has died and therefore they no longer can use that account.

    Is you step son likely to default?  Because he's upset or because he thinks he can get away with it??  

    Sorry for your loss. 
    "Never retract, never explain, never apologise; get things done and let them howl.”
  • MorningcoffeeIV
    MorningcoffeeIV Posts: 1,925
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    My late wife acted as guarantor on my step sons loan. if he now defaults on his loan will i be liable
    ?

    No, but it could be sought from her estate.
  • Keep_pedalling
    Keep_pedalling Posts: 16,232
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    My late wife acted as guarantor on my step sons loan. if he now defaults on his loan will i be liable
    ?

    No, but it could be sought from her estate.
    Not if a default occurs after her death. 
  • retiredbanker1
    retiredbanker1 Posts: 315
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    My late wife acted as guarantor on my step sons loan. if he now defaults on his loan will i be liable
    ?

    No, but it could be sought from her estate.
    Not if a default occurs after her death. 
    Exactly this - the guarantee (unless secured - not likely in this case) ceases upon date of death. I would advise the lender of this showing them a copy of the death certificate. They may ask the borrower to find a new guarantor which should be politely declined.
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